The aggregate demand curve is downward sloping partly because of the wealth effect

a. True
b. False
Indicate whether the statement is true or false


True

Economics

You might also like to view...

Which of the following changes aggregate supply and shifts the aggregate supply curve?

i. change in the price level ii. change in potential GDP iii. change in the money wage rate A) i only B) ii only C) iii only D) ii and iii E) i, ii, and iii

Economics

When comparing the composition of world trade in the early 20th century to the early 21st century, we find major compositional changes. These include a relative decline in trade in agricultural and primary-products (including raw materials)

How would you explain this in terms of broad historical developments during this period?

Economics

Gross federal debt in 2005 was approximately what percent of 2005 GDP?

a. 5 percent b. 25 percent c. 40 percent d. 50 percent e. 90 percent

Economics

When a good ends up overconsumed and depleted, we can assume it is a:

A. scarce good. B. common resource. C. public good. D. private good.

Economics